Updated April 2025
When you think about income-generating stocks, recreational vehicles probably aren’t the first thing that comes to mind. But THOR Industries (NYSE: THO) has quietly earned a place in many dividend-focused portfolios. As the largest RV manufacturer in the world, THOR owns a strong lineup of familiar brands like Airstream, Jayco, and Keystone. The company has long been tied to outdoor recreation trends and retirement lifestyle shifts, and while its business is undoubtedly cyclical, its dividend approach has been anything but.
Headquartered in Elkhart, Indiana, THOR has been around since 1980. It’s not the flashiest company, but it’s built a reputation over the decades for knowing its market and staying the course. For investors who appreciate steady cash returns over big headlines, there’s something to be said for a business that keeps moving forward even when economic headwinds pick up.
Recent Events
The past year hasn’t been kind to THOR’s share price. The stock has dropped nearly 32% over the past 12 months, taking a sharp turn from its 52-week high of nearly $119 to now trading around the mid-$70s. This pullback comes as interest rates have climbed and consumer spending on big-ticket discretionary items—like RVs—has cooled off.
On the business front, revenue is slipping. The most recent numbers showed an 8.6% year-over-year decline, and margins are feeling the pressure. Net income is sitting at just 2.13% of revenue, and the operating margin has compressed to under half a percent. These are slim numbers, reflecting a tougher sales environment.
But through it all, one thing hasn’t changed: THOR’s commitment to paying its shareholders. Even with these challenges, the company hasn’t touched its dividend—and that’s telling.
Key Dividend Metrics
📈 Dividend Yield: 2.61% (Forward)
💰 Annual Dividend: $2.00 per share
🧮 Payout Ratio: 51.99%
🕰️ 5-Year Average Yield: 1.82%
📆 Next Ex-Dividend Date: April 8, 2025
💵 Dividend Pay Date: April 22, 2025
🔁 Last Stock Split: 2-for-1 in January 2004
🧷 Cash on Hand: $373 million
💡 Free Cash Flow: $552 million (TTM)
Dividend Overview
THOR may not be known as a classic dividend play, but it has steadily built that profile. The current forward yield of 2.61% is higher than its own five-year average, reflecting the recent price drop more than any aggressive change in payout. The annual dividend of $2.00 per share is well-covered by earnings and supported by the company’s strong cash flow position.
What stands out is the consistency. THOR isn’t swinging for the fences with its payout, but it’s also not wavering when the going gets tough. The payout ratio is right around 52%, which gives it room to breathe if earnings come under more pressure. It’s not overly conservative, either—it shows confidence without being reckless.
Looking at cash flow, the company generated $552 million in free cash over the last 12 months. Compare that to roughly $106 million in annual dividend obligations (based on 53.2 million shares), and you get a coverage ratio that’s hard to argue with. They’re not just covering the dividend—they’re doing so comfortably.
Debt is part of the picture, with about $1.07 billion outstanding. But THOR also has a solid cash cushion of $373 million and a current ratio of 1.71, which means it’s got decent liquidity to manage through short-term bumps. The overall balance sheet is in decent shape—not pristine, but solid enough for the kind of business THOR runs.
Dividend Growth and Safety
Dividend growth might not jump off the page, but it’s been steady. Over the past decade, THOR has gradually lifted its annual dividend from just under $0.30 to its current $2.00 level. The most recent bump came in late 2023—modest, yes, but consistent with how the company typically moves.
What’s more important than the size of the increase is the fact that it happened at all. THOR made that raise even as sales declined and margins tightened, signaling confidence from management. They’re not operating from a place of panic, and they clearly view the dividend as a key part of shareholder return.
From a safety perspective, this is the kind of dividend setup that investors who like sleep-at-night holdings can appreciate. Earnings might fluctuate, especially in a consumer-discretionary sector like RVs, but free cash flow has been resilient. And with the payout ratio where it is, there’s no indication of strain.
THOR isn’t likely to shock anyone with double-digit dividend hikes, but that’s not the point. For income investors, the appeal is in the stability and the financial discipline. The company has shown a willingness to keep payouts going even in slower years, and that’s a track record worth noting.
As the RV market continues to normalize post-pandemic and the macro picture evolves, there’s room for margin recovery and growth. But even without that, THOR’s dividend stands on a solid foundation. It’s not flashy, but it’s dependable—and in a dividend portfolio, that’s often what counts most.
Balance Sheet Analysis
THOR Industries is sitting on a balance sheet that tells a story of tightening up and finding its financial footing after a stretch of heavier leverage. Total assets have ticked down slightly over the past year to just above $7 billion, a small decline that likely reflects a bit of inventory management and perhaps some belt-tightening as demand normalizes. What stands out more, though, is the drop in total liabilities—from $3.8 billion in 2022 to under $3 billion in the most recent period. That’s not just cleaning house, that’s the financial equivalent of a spring garage sale.
Equity has steadily climbed to over $4 billion, which gives THOR a stronger base than it had even during its pandemic boom. Tangible book value has more than tripled since 2021, and net tangible assets now sit comfortably above $1.4 billion. The company also has over $1 billion in working capital, showing a solid short-term buffer. Debt has come down notably too, with net debt sliced nearly in half over the past two years. All in all, the balance sheet looks far less bloated and more balanced—like someone who cut back on the carbs but still splurges on dessert occasionally. It’s not flashy, but it’s healthy where it counts.
Cash Flow Statement
THOR Industries has kept its cash flow profile relatively clean and efficient despite some bumps in operating conditions. Over the trailing twelve months, operating cash flow came in at $651 million, a healthy improvement from the previous year and a solid recovery considering the dip from its pandemic-era highs. Capital expenditures were just over $112 million, resulting in strong free cash flow of $539 million—a level that easily supports dividends and leaves room for some flexibility.
The company has also taken a firm stance on deleveraging. Financing cash flow came in at a negative $531 million, largely due to over $369 million in debt repayments and continued share repurchases. They’ve clearly prioritized reducing obligations over raising new capital, with no debt issued in the TTM. The cash position dipped slightly to around $360 million, but that’s still a decent cushion. Overall, this is a cash flow picture of a company dialing back the borrowing and tightening capital allocation without losing sight of shareholder returns.
Chart Analysis
Trend and Moving Averages
Looking at the one-year price action, the stock has been under steady pressure for most of the period. After peaking above $110 early last year, price began to steadily decline, failing to reclaim higher levels despite some mid-year strength. The 50-day moving average (in red) has been trending lower since early January and remains well below the 200-day (in blue), which has also begun to slope downward. This cross confirms sustained downside momentum over the intermediate term, with no strong reversal signals just yet.
Recent price action sits well below both moving averages, suggesting that sentiment is still bearish, or at least skeptical. There’s a slight bounce off the lows in the most recent candles, but until the price starts closing consistently above the 50-day, it’s hard to call it anything more than a relief move.
Volume and Participation
Volume tells its own story. A clear spike in activity hit in March, likely signaling capitulation or forced selling as the price broke below the $90 range. Since then, volume has remained elevated, suggesting the market is still actively sorting out this price level. However, we haven’t seen consistent accumulation patterns yet—just bursts of interest.
RSI and Momentum
The Relative Strength Index (RSI) shows that the stock spent a good chunk of March scraping near oversold levels. It’s now beginning to climb back toward neutral territory, pushing into the 50s. While this hints at recovering momentum, it’s more of a short-term bounce than a long-term shift in trend. That said, if RSI continues rising without the price breaking new lows, it could be the early stages of a momentum reset.
Overall, the chart reflects a name still under pressure but attempting to find footing. Price is at a key area where past selling has climaxed and sentiment may begin to shift.
Analyst Ratings
📈 In early March 2025, Bank of America shifted its stance on THOR Industries, upgrading the stock from neutral to buy and bumping the price target up to $125. The reasoning behind the upgrade centered on a renewed sense of optimism about THOR’s ability to regain market share in the RV space. Analysts pointed to stabilizing inventory levels and anticipated improvement in consumer confidence heading into the second half of the year.
📉 Not long after, on March 19, Citigroup took a more cautious approach, downgrading the stock from buy to neutral and setting a slightly lower price target of $122. Their move was driven by concerns that macroeconomic pressure could weigh on discretionary spending, especially for high-ticket items like RVs. While not bearish on the long-term, the firm viewed near-term headwinds as enough to pause their previous bullish stance.
🚩 The most bearish take came from KeyBanc on March 20, when they initiated coverage with an underweight rating and a price target of $65. Their analysis leaned heavily on the belief that THOR could face ongoing challenges in maintaining pricing power and volume in a competitive, rate-sensitive environment.
🎯 As it stands, the average consensus price target among analysts sits around $93. That’s a modest premium to the current price, indicating a mixed but cautiously constructive outlook. The general tone of analyst coverage suggests there’s appreciation potential, but it’s likely to be a slow grind rather than a sprint.
Earning Report Summary
Slower Sales, But No Panic
THOR Industries just wrapped up its fiscal Q2 2025, covering the three months ending January 31, and the results were a bit of a mixed bag. Net sales came in at $2.02 billion, which was down 8.6% from the same quarter last year. Not a surprise, really—interest rates are still high, and buyers seem to be holding off on big-ticket items like RVs. That kind of environment doesn’t make it easy to move inventory, especially when consumer sentiment is shaky.
Margins held up surprisingly well though. Gross margin came in at 12.1%, barely dipping from the 12.3% a year ago. That shows they’ve been managing costs effectively, even with the lower sales volume. Still, the company reported a small net loss of $0.6 million, or $0.01 per diluted share. That’s a big step down from the $7.2 million profit this time last year, but the loss is minimal—and not something that’s likely to rattle long-term holders.
Segment Performance All Over the Map
The story gets more interesting when you dig into the business segments. North American Towables actually saw sales increase by over 13%, hitting $828 million. That was mostly driven by a big jump in unit shipments, although the average selling price dropped because buyers are leaning toward smaller, less expensive models.
The Motorized segment didn’t fare as well. Sales fell 21.8% to $446 million, mostly because of fewer shipments and more discounting. It’s clear demand here hasn’t bounced back yet. Over in Europe, the RV segment also took a hit, with sales down 21.7% to $612 million. Some of that drop came from foreign exchange headwinds, but lower demand played a role too.
Toning Down Expectations
Given all that, THOR lowered its full-year guidance. It now expects total revenue between $9.0 and $9.5 billion, down from the earlier high-end estimate of $9.8 billion. Earnings per share guidance was trimmed to a range of $3.30 to $4.00, which is a step down from the prior $4.00 to $5.00 outlook. Margins are still expected to land somewhere between 13.8% and 14.5%.
So yes, things are a bit slower—but it’s a measured response, not a red flag. The company seems to be adjusting to the environment rather than reacting with panic.
Management Team
THOR Industries is led by a leadership group that knows the RV world from the inside out. Robert W. Martin has been with the company since 2001, coming over with THOR’s acquisition of Keystone RV. He worked his way up and has served as CEO since 2013. Martin’s long tenure and industry background give him a steady hand, and he’s guided the company through both expansion and contraction cycles.
Next to him is Colleen Zuhl, the company’s Senior Vice President and CFO. She’s a CPA and has been with THOR since 2011, taking on a number of financial leadership roles before becoming CFO. Zuhl plays a central role in managing the company’s capital strategy and making sure the financial engine stays on track. Together with the broader executive team, they bring decades of experience in operations, finance, and manufacturing to the table—solid leadership for a business that often rides the wave of consumer cycles.
Valuation and Stock Performance
As of early April 2025, THOR’s stock trades at $78.83, having bounced slightly from recent lows just under $76. Over the past year, the stock has been under pressure, and the broader slowdown in discretionary spending hasn’t helped. The high from the past year was up near $119, so the retracement has been significant.
Valuation metrics paint an interesting picture. The stock trades at a price-to-earnings ratio of 20.32, which sits on the higher end for a manufacturing company, but reflects some confidence in a potential earnings rebound. Meanwhile, the price-to-book ratio is hovering around 1.03, which suggests shares are priced near their underlying asset value—a level that tends to draw interest from value-oriented investors.
Market sentiment is mixed. Some analysts see the company as a turnaround play once interest rates ease and RV demand rebalances. Others are holding back, citing persistent economic uncertainty. The average analyst price target is about $93, implying some modest upside from current levels but not enough to shift the stock into momentum territory just yet.
Risks and Considerations
There are a few things to keep in mind when looking at THOR. First, this is a highly cyclical business. RVs are not must-have items; they’re big-ticket purchases that tend to get cut first when consumers tighten their belts. So when the economy slows or rates rise, THOR’s sales tend to follow suit.
There’s also the matter of supply chain complexity. THOR relies on a range of components, many of which come from third-party suppliers. Any hiccup in that system—whether it’s a shortage, a strike, or a logistical mess—can ripple through production timelines and squeeze margins.
Competition is always on the table. THOR isn’t the only player in town, and companies like Winnebago and Forest River are constantly vying for customer dollars. Innovation, dealer relationships, and brand perception all play a role in maintaining market share.
On the regulatory side, emissions standards and broader environmental rules continue to evolve. That means more R&D, possible redesigns, and investments in cleaner or more efficient models. It’s a challenge, but also an area where early movers could differentiate.
Final Thoughts
THOR Industries is a well-established name in the RV space, run by a team that knows the industry’s ins and outs. While recent results and current headwinds have weighed on the stock, the company’s long-term positioning remains intact. It’s not immune to economic cycles, but it has shown an ability to adapt, scale operations, and maintain shareholder returns through challenging periods.
This isn’t a stock that typically makes headlines, but it’s one that has quietly built a reputation for long-term durability. As the market finds its footing and rate pressures eventually ease, THOR could be positioned to benefit from renewed interest in travel, outdoor recreation, and affordable exploration—all things RV buyers tend to value when the economy opens up again.